Is Workers’ Comp Required in Colorado?

An A-Z guide on everything you need to know before you purchase a Colorado Workers' Comp Insurance Policy

Workers’ comp is required in Colorado for most businesses, no matter the number of employees or the size. Employers must provide coverage so they are protected in the case of work-related illnesses or injuries. 

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Employees who are full-time, part-time, or even family members need to be covered by a policy.

Who can be exempt?

  • Some Domestic workers 
  • Commission-based Real estate agents 
  • Motor carriers who lease vehicles from or to drivers
  • Casual ranch and farm labor 
  • Ski volunteers

Are businesses required to have workers’ compensation in Colorado?

Nearly all businesses in Colorado are required to carry coverage. Whether you run a small startup or a massive corporation, you have the same obligated to provide worker’s comp coverage to your workers.

If you have any employees, you need insurance. This applies to employees who are full-time, part-time, or family members. 

Do self-employed professionals need to carry workers’ compensation in Colorado?

Self-employed professionals in Colorado are not required to carry workers’ compensation insurance to cover themselves. However, if they have employees who work for them, they will need to provide workers’ compensation for those individuals.

Who is exempt from Colorado for workers’ comp requirements?

If the business is an LLC or corporation, you can be exempt if you own at least 10% of the company and are the president, vice-president, secretary, treasurer, or chairman of the board for the corporation or a member of the LLC.

Also, some domestic workers, commission-based Real estate agents, motor carriers who lease vehicles from or to drivers, casual ranch and farm labor, and ski volunteers.

How much is workers’ comp coverage in Colorado?

Your Colorado workers’ comp rate will depend on the following factors:

  • The type of business you have
  • The size of your payroll
  • Your safety record
  • Claim history
workers comp policy cost

How can Colorado small business owners save money on workers' comp?

There are several ways available to reduce your costs, including:

How does workman’s comp work in CO?

While workers’ comp rates will vary depending on your state, as well as from industry to industry and even business to business, the process is the same.

When you purchase an insurance policy, you’ll have to estimate your payroll amount for the next 12 months. This is what your premium is based on.

At the end of your term (most often 12 months), the insurance company will audit your payroll and determine the exact amount you paid your employees.

If your actual payroll is lower than projected, you receive a refund. If it’s more than projected, you’ll owe more money.

What does workers’ comp cover in Colorado?

Workers who file a workers' comp claim in Colorado can receive benefits for the following:

workers comp covers medical bills

Medical bills

workers comp covers lost wages

Lost Wages

Workers' comp coverage also protects employers from legal action. This means that if an employee sues your business because of a workplace injury, the insurance will cover the legal costs of the case.

How can business owners purchase workers’ comp insurance in Colorado?

The most common method to get Colorado workers’ comp insurance is by reaching out to a insurance agent for a quote. You can visit Kickstand Insurance to receive an online quote in moments.

There is no state fund for insurance in Colorado, but some businesses may choose to self-insure. To qualify, the company must have been in business for at least five years or be a subsidiary of another company that has. 

In addition, it must have at least 300 full-time workers in Colorado or be or have a parent company with assets of $100 million or more.

What are the possible consequences if I don’t have workers’ comp insurance in CO?

Colorado takes the requirement to protect businesses and workers extremely seriously. There could be very serious repercussions for a business that does not have the appropriate insurance coverage, including the following:

  • Fines of up to $500 for every day uninsured
  • A full shutdown of your business
  • The need to play full claims and a penalty of 25% of injured workers’ benefits
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What kind of death benefits are available in CO?

Death benefits in Colorado can be paid out to dependents. If dependents do not exist, the benefits can be used for hospital, medical, and funeral expenses. 

Monetary benefits include:

  • Up to $7,000 in burial allowance
  • Up to 66% percent of the employee’s average weekly wage
  • Death benefits are payable until a spouse dies or gets remarried or a child turns 18 or 21

How do workers’ comp settlements work in CO?

Workers’ compensation settlements in Colorado can be composed of a single lump sum payment or a series of payments over time. The settlement type depends on the specifics of the case. 

Claims cannot be settled before an administrative judge approves the agreement. If an employee doesn’t wish to negotiate or settle, the process can go to trial. If this happens, a judge will choose a fair settlement amount and the insurance company is responsible for paying the claim.

Are there any workers’ compensation statutes of limitations in CO?

Most of the time, you will have two years to file a claim. In some cases, this can be extended to three years if a judge agrees.

How do I get a workers’ comp insurance policy with Kickstand Insurance?

Start by filling out a short online form about your business. We’ll use that info to get you an estimated quote. Then, one of our experienced agents will contact you to review the quote and make sure you are getting the absolutely lowest rate possible for your business. Once the quote is finalized, you’re ready to buy the policy - often with coverage starting that day!

Learn more about Workers' Comp in Colorado

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Why does it matter?

  • Avoid surprise bills at audit
  • Make sure all your employees are properly covered
  • Protect yourself from lawsuits

What do we check?

  • Business categorized correctly
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It’s time to get the coverage you need. Just complete our simple online form and we’ll get you a no-obligation quote and connect with one of our expert CO agents. It’s that simple!